CNH INDUSTRIAL N.V. LONDON, Jan. 29, 2015 /PRNewswire/ --
Financial results under U.S. GAAP((*) (**))
-- Revenues totaled $8.4 billion for the fourth quarter and $32.6 billion
for the full year 2014 ($9.3 billion and $33.8 billion for the same
periods in 2013). Net sales of Industrial Activities were $8.0 billion
for the quarter and $31.2 billion for the year ($9.0 billion and $32.7
billion for the same periods in 2013), down 5.9% and 2.8%, respectively,
on a constant currency basis.
-- Operating profit of Industrial Activities was $376 million for the
quarter ($389 million in Q4 2013), with an operating margin at 4.7% (up
0.4 p.p.). For the full year operating profit of Industrial Activities
was $1,988 million ($2,095 million in 2013). Operating margin stood at
6.4%, flat year over year.
-- Net income was $87 million (or $0.06 per share) for the quarter and $708
million (or $0.52 per share) for the full year. Net income before
restructuring and other exceptional items was $167 million (or $0.12 per
share) for the quarter and $940 million (or $0.69 per share) for the
full year, up $50 million compared to Q4 2013 and down $7 million for
the full year.
-- Net industrial debt was $2.7 billion at December 31, 2014 ($3.9 billion
at September 30, 2014 and $2.2 billion at December 31, 2013). Available
liquidity totaled $8.9 billion ($8.7 billion at December 31, 2013).
-- The Board of Directors is recommending for 2014 a dividend of EUR0.20
per common share, totaling approximately $307 million (EUR271 million).
-- For 2015 CNH Industrial expects net sales of Industrial Activities at
approximately $28 billion, with operating margin of Industrial
Activities between 6.1% and 6.4%. Net industrial debt expected between
$2.2 billion and $2.4 billion.
(*) Beginning with the filing with the U.S. Securities and
Exchange Commission ("SEC") of its annual report on
Form 20-F for the fiscal year ended December 31, 2013,
prepared in accordance with U.S. GAAP, CNH Industrial
reports quarterly and annual financial results both
under U.S. GAAP for SEC reporting purposes and under
IFRS for European listing purposes and Dutch law
requirements. Financial statements under both sets of
accounting principles use the U.S. dollar as the
reporting currency. In addition, as disclosed in the
Form 20-F, CNH Industrial has expanded its reportable
segments from three (Agricultural and Construction
Equipment inclusive of its financial services
activities, Trucks and Commercial Vehicles inclusive of
its financial services activities, and Powertrain) to
five (Agricultural Equipment, Construction Equipment,
Commercial Vehicles, Powertrain and Financial
Services). The following tables and comments on the
financial results of the Company and by segments are
prepared in accordance with U.S. GAAP. Financial
results under IFRS are shown in specific tables at the
end of this press release. Prior period results under
IFRS, prepared in Euro, have been consistently recast
into U.S. dollars. A summary outlining the Company's
transition to U.S. GAAP and the U.S. dollar as the
reporting currency is available on the Company's
website, www.cnhindustrial.com.
(**) Refer to the Non-GAAP Financial Information section of
this press release for information regarding Non-GAAP
financial measures.
CNH INDUSTRIAL
Summary Income Statement ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
32,555 33,836 -3.8% Revenues 8,365 9,290 -10.0%
------ ------ ---- -------- ----- ----- -----
708 828 -120 Net income 87 54 33
--- --- ---- ---------- --- --- ---
940 947 -7 Net income before restructuring
and other exceptional items 167 117 50
--- --- --- -------------------------------- --- --- ---
710 677 33 Net income attributable to CNH
Industrial N.V. 83 60 23
--- --- --- ------------------------------- --- --- ---
0.52 0.54 -0.02 Basic EPS ($) 0.06 0.04 0.02
---- ---- ----- ------------ ---- ---- ----
0.52 0.54 -0.02 Diluted EPS ($) 0.06 0.04 0.02
---- ---- ----- -------------- ---- ---- ----
0.69 0.63 0.06 Basic EPS before restructuring
and other exceptional items ($) 0.12 0.08 0.04
---- ---- ---- ------------------------------- ---- ---- ----
CNH INDUSTRIAL
Income Statement Data of Industrial
Activities(1) ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
31,198 32,661 -4.5% Net sales of Industrial
Activities 8,018 8,996 -10.9%
------ ------ ---- ------------------------ ----- ----- -----
1,988 2,095 -107 Operating profit of
Industrial Activities (2) 376 389 -13
----- ----- ---- -------------------------- --- --- ---
6.4 6.4 0.0 p.p. Operating margin of
Industrial Activities (%) 4.7 4.3 0.4 p.p.
--- --- -------- -------------------------- --- --- --------
(1) Industrial Activities represent the activities carried out by the four
industrial segments Agricultural Equipment, Construction Equipment, Commercial
Vehicles, and Powertrain, as well as Corporate functions.
(2) Operating profit of Industrial Activities is a non-GAAP measure and is
defined as net sales less cost of goods sold, selling, general and administrative
expenses, and research and development expenses.
---------------------------------------------------------------------------------
CNH Industrial N.V. (NYSE:CNHI / MI:CNHI) today announced consolidated revenues of $32,555 million for 2014, down 3.8% compared to 2013 (down 2.1% on a constant currency basis). Net sales of Industrial Activities were $31,198 million in 2014, down 4.5% from 2013 (down 2.8% on a constant currency basis). Net sales increases in Construction Equipment and Powertrain were offset by a decline in Agricultural Equipment, mainly due to unfavorable volume and product mix, particularly in LATAM and NAFTA, and in Commercial Vehicles in LATAM, as well as by the negative impact of currency translation, primarily relating to the Brazilian real.
CNH INDUSTRIAL
Revenues by Segment ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 % change 2014 2013 % change
---- ---- -------- ---- ---- --------
15,204 16,763 -9.3 Agricultural
Equipment 3,403 4,142 -17.8
------ ------ ---- ----- -----
3,346 3,258 2.7 Construction
Equipment 800 832 -3.8
----- ----- --- --- ----
10,888 11,278 -3.5 Commercial
Vehicles 3,354 3,551 -5.5
------ ------ ---- ----- ----
4,464 4,412 1.2 Powertrain 988 1,331 -25.8
----- ----- --- ---------- --- ----- -----
(2,704) (3,050) - Eliminations
and other (527) (860) -
------ ------ --- ------------- ---- ---- ---
31,198 32,661 -4.5 Total
Industrial
Activities 8,018 8,996 -10.9
------ ------ ---- ----------- ----- ----- -----
1,828 1,679 8.9 Financial
Services 465 432 7.6
----- ----- --- ---------- --- --- ---
(471) (504) - Eliminations
and other (118) (138) -
---- ---- --- ------------- ---- ---- ---
32,555 33,836 -3.8 Total 8,365 9,290 -10.0
------ ------ ---- ----- ----- ----- -----
Operating profit of Industrial Activities was $1,988 million in 2014, a 5.1% decrease compared to 2013 (down 3.6% on a constant currency basis), with an operating margin for the year at 6.4%, in line with 2013. Operating profit improved in Construction Equipment and Powertrain and declined in Agricultural Equipment and Commercial Vehicles. Construction Equipment benefitted from favorable volume and mix in all regions, positive price realization, and cost efficiencies. For Powertrain, the improvement was due to the increased activity with third parties, and continued industrial cost efficiencies. For Commercial Vehicles, positive performance in EMEA and APAC and significant reductions in selling, general and administrative ("SG&A") expenses were offset by the negative effects of challenging trading conditions in LATAM, due to a significant decline in market demand. In Agricultural Equipment, lower volume and negative product mix were partially offset by positive net price realization, industrial efficiencies and structural cost reductions in SG&A and research and development ("R&D") expenses. Foreign exchange translation impacts were not material to the operating profit of Industrial Activities.
CNH INDUSTRIAL
Operating profit/(loss) by Segment (1) ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
1,770 2,008 -238 Agricultural
Equipment 241 312 -71
----- ----- ---- --- ---
79 (97) 176 Construction
Equipment 9 (53) 62
--- --- --- --- ---
29 74 -45 Commercial
Vehicles 100 98 2
--- --- --- --- ---
223 187 36 Powertrain 66 69 -3
--- --- --- ---------- --- --- ---
(113) (77) -36 Eliminations
and other (40) (37) -3
---- --- --- ------------ --- --- ---
1,988 2,095 -107 Total
Industrial
Activities 376 389 -13
----- ----- ---- ----------- --- --- ---
554 514 40 Financial
Services 147 115 32
--- --- --- ---------- --- --- ---
(343) (332) -11 Eliminations
and other (88) (90) 2
---- ---- --- ------------ --- --- ---
2,199 2,277 -78 Total 435 414 21
----- ----- --- ----- --- --- ---
(1) Operating profit of Industrial Activities (a non-
GAAP measure) is defined as net sales less cost of goods sold,
selling, general and administrative expenses, and research and
development expenses. Operating profit of Financial Services
(a non-GAAP measure) is defined as revenues less selling,
general and administrative expenses, interest expense and
certain other operating expenses.
--------------------------------------------------------------
CNH INDUSTRIAL
Reconciliation of Operating Profit to Net Income ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 2014 2013
---- ---- ---- ----
2,199 2,277 Total Operating Profit 435 414
----- ---
184 71 Restructuring expenses 86 39
--- ---
613 548 Interest expenses of Industrial
Activities, net of interest income and
eliminations 164 166
--- ---
(313) (284) Other, net (59) (62)
---- ---
1,089 1,374 Income before income taxes and equity in
income of unconsolidated subsidiaries and
affiliates 126 147
----- ---
467 671 Income taxes 59 130
--- --- ------------ --- ---
86 125 Equity in income of unconsolidated
subsidiaries and affiliates 20 37
--- --- ----------------------------------- --- ---
708 828 Net income 87 54
--- --- ---------- --- ---
Restructuring expenses totaled $184 million for the year, as part of the Company's Efficiency Program announced in July 2014. Agricultural Equipment recorded $43 million primarily due to the closure of a joint venture in China and cost reduction activities as a result of negative demand conditions. Commercial Vehicles recorded $102 million mainly due to actions to reduce SG&A expenses and business support costs as a result of the transition to CNH Industrial's regional structure, and costs related to the completion of manufacturing product specialization programs. Construction Equipment recorded $39 million mainly due to the realignment of the dealer networks in EMEA as a result of the re-positioning of the Case and New Holland brand offerings , and the announced closure of the Company's Calhoun, Georgia, USA facility. For 2013, restructuring expenses were $71 million, mainly related to Commercial Vehicles primarily related to manufacturing product specialization programs.
Interest expense, net totaled $613 million in 2014, $65 million higher than 2013, primarily due to an increase in average net industrial debt during the year, partially offset by more favorable interest rates primarily related to the new notes issued during the year.
Other, net was a charge of $313 million for 2014 (charge of $284 million for 2013). The increase of $29 million was mainly due to higher foreign exchange losses, which included a $71 million pre-tax charge for the re-measurement of Venezuelan assets denominated in Bolivars.
Income taxes totaled $467 million for 2014, representing an effective tax rate of 42.9% (2013 effective tax rate of 48.8%), in line with the Company's expectations for the year, and well above the expected long term target.
Equity in income of unconsolidated subsidiaries and affiliates totaled $86 million for the year ($125 million for 2013); the decrease was mainly due to lower results from APAC joint ventures as a result of more difficult trading conditions.
Net income of Financial Services was $364 million for 2014, compared to $342 million for 2013, as a result of a larger comparable portfolio and one-time items in the previous year.
Consolidated net income was $708 million for 2014 ($828 million for 2013). Net income attributable to CNH Industrial N.V. was $710 million ($677 million for 2013), or $0.52 per share ($0.54 for 2013). Net income before restructuring and other exceptional items (a non-GAAP measure) was $940 million for 2014 ($947 million for 2013), or $0.69 per share ($0.63 per share for 2013).
Net industrial debt of $2.7 billion at December 31, 2014 was $0.5 billion higher than at December 31, 2013. Cash generation in the operations before changes in working capital contributed for $1.3 billion. Changes in working capital negatively impacted by $1.0 billion, mainly due to lower payables as a result of the relevant production curtailments in Agricultural Equipment in the fourth quarter, and of Commercial Vehicles in EMEA returning to normalized levels of production as compared to prior year's Euro V pre-buy activity, as well as in LATAM operations. Capital expenditure activity totaled $1.0 billion and dividend payments were $0.4 billion. Currency translation differences on euro-denominated debt positively affected net industrial debt by $0.6 billion.
Available liquidity at December 31, 2014 was $8.9 billion, inclusive of $2.7 billion in undrawn committed facilities ($2.2 billion at December 31, 2013), compared to $8.7 billion at December 31, 2013. During the year, a EUR1.75 billion five-year committed revolving credit facility was signed, replacing an existing three-year EUR2 billion facility due to mature in February 2016.
Fourth Quarter
The Company reported consolidated revenues of $8,365 million for the fourth quarter of 2014, down 10.0% compared to Q4 2013 (down 4.9% on a constant currency basis). Net sales of Industrial Activities were $8,018 million in Q4 2014, down 10.9% from Q4 2013 (down 5.9% on a constant currency basis), largely as a result of the difficult demand conditions in Agricultural Equipment.
Operating profit of Industrial Activities totaled $376 million for the fourth quarter ($389 million in the comparable period), with an operating margin of 4.7% (4.3% in Q4 2013). Construction Equipment operating performance improved as a result of lower SG&A and R&D expenses, and positive volume and mix. Agricultural Equipment operating profit was negatively affected by unfavorable volume and mix, including negative industrial absorption primarily related to production curtailments to realign inventory to market demand, partially offset by favorable pricing and cost efficiencies. Commercial Vehicles operating performance was stable compared to Q4 2013 as improved EMEA operations were able to offset challenging trading conditions in LATAM and negative foreign exchange currency impacts. Powertrain operating performance was stable, with industrial efficiencies offsetting reduced volumes with captive customers.
Restructuring expenses totaled $86 million in the quarter, mainly due to actions to reduce SG&A expenses and business support costs, as well as costs related to the completion of manufacturing product specialization programs for Commercial Vehicles, and to cost reduction activities as a result of negative demand conditions within Agricultural Equipment. For Q4 2013, restructuring expenses were $39 million, mainly related to Commercial Vehicles.
Interest expense, net totaled $164 million for the quarter, compared to $166 million for Q4 2013, with more favorable interest rates offset by an increase in average net industrial debt.
Net income of Financial Services was $98 million for the quarter, compared to $122 million for Q4 2013, as the positive impact of the higher average portfolio and lower provisions for credit losses was more than offset by higher income taxes.
Consolidated net income was $87 million for the quarter ($54 million for Q4 2013). Net income attributable to CNH Industrial N.V. was $83 million for the quarter ($60 million for Q4 2013), or $0.06 per share ($0.04 for Q4 2013), Net income before restructuring and other exceptional items (a non-GAAP measure) was $167 million for the quarter ($117 million for Q4 2013).
Agricultural Equipment
AGRICULTURAL EQUIPMENT
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
15,204 16,763 -9.3% Net sales 3,403 4,142 -17.8%
------ ------ ---- --------- ----- ----- -----
1,770 2,008 -238 Operating profit 241 312 -71
----- ----- ---- ---------------- --- --- ---
11.6 12.0 -0.4 p.p. Operating margin
(%) 7.1 7.5 -0.4 p.p.
---- ---- --------- ---------------- --- --- ---------
Net sales for Agricultural Equipment were $15,204 million for 2014, down 9.3% from 2013 (down 7.9% on a constant currency basis), driven by unfavorable volume and product mix, particularly in LATAM and NAFTA with a significant decrease for high horsepower products. This impact was partially offset by positive pricing. All of the regions reported decreases in net sales with the largest proportionate decline reported in LATAM. The geographic distribution of net sales for the year was 45% NAFTA, 31% EMEA, 13% LATAM and 11% APAC.
Worldwide agricultural equipment industry unit sales were down compared to 2013, with global demand for tractors down 7% and combines down 18%. NAFTA tractor demand was up 3%, largely concentrated in the lower horsepower segment (under 140 hp). The over 140 hp segment and combine demand were both down 25% year over year. LATAM tractor and combine markets decreased 15% and 24% respectively. EMEA markets were down 8% for tractors and 10% for combines, with a significant deceleration in tractor demand in Q4 2014. APAC markets decreased 8% for tractors and 9% for combines.
Agricultural Equipment's worldwide market share performance was in line with the market for tractors but below the market for combines, mainly due to transition to Tier 4B engine compliant products in NAFTA and a negative market mix in APAC.
Agricultural Equipment's worldwide production units was 5% higher than retail sales during 2014 but 19% below retail sales for the fourth quarter, as the Company implemented its planned production slowdown to reduce Company and dealer inventory.
Agricultural Equipment's operating profit was $1,770 million for the year ($2,008 million in 2013). Operating margin was 11.6% (12.0% in 2013), with decreased volumes, unfavorable product mix, and negative industrial cost absorption, offset by positive net pricing as well as SG&A and R&D expense reductions.
For the fourth quarter 2014, net sales totaled $3,403 million, a decrease of 17.8% compared to the same period in 2013 (down 14.2% on a constant currency basis), due to negative volume and product mix, partially offset by positive pricing.
Operating profit was $241 million in the fourth quarter, compared to $312 million for Q4 2013, with an operating margin of 7.1% (7.5% in Q4 2013). The decrease was driven by unfavorable volume, mix and industrial costs (primarily related to production curtailments to realign inventory to market demand), partially offset by favorable pricing, as well as SG&A and R&D expense reductions.
Construction Equipment
CONSTRUCTION EQUIPMENT
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
3,346 3,258 2.7% Net sales 800 832 -3.8%
----- ----- --- --------- --- --- ----
79 (97) 176 Operating
profit/(loss) 9 (53) 62
--- --- --- -------------- --- --- ---
2.4 (3.0) 5.4 p.p. Operating margin
(%) 1.1 (6.4) 7.5 p.p.
--- ---- -------- ---------------- --- ---- --------
Net sales for Construction Equipment were $3,346 million in 2014, up 2.7% from 2013 (up 5.1% on a constant currency basis), due to positive pricing in NAFTA and LATAM, along with positive volume and mix in NAFTA and EMEA. This was partially offset by weakened activity in LATAM and APAC. The geographic distribution of net sales for the year was 44% NAFTA, 20% EMEA, 27% LATAM and 9% APAC.
In 2014, worldwide heavy and light construction equipment industry sales were down 9% and up 5%, respectively, from the prior year. Industry heavy construction equipment sales were up in NAFTA and EMEA but decreased in LATAM and APAC. Industry light construction equipment sales were up in NAFTA and EMEA, flat in APAC and down considerably in LATAM.
Construction Equipment's worldwide market share was in line with the market overall. For heavy construction equipment, market share increased in all regions. For light construction equipment, market share was down slightly in APAC and EMEA, while up in LATAM.
Construction Equipment's worldwide production was in line with retail sales for 2014.
Construction Equipment reported operating profit of $79 million for 2014 compared to an operating loss of $97 million for 2013, with an operating margin of 2.4%, as a result of favorable pricing in NAFTA and LATAM, positive volume and mix in all regions and lower SG&A and R&D expenses.
For the fourth quarter 2014, net sales totaled $800 million, a decrease of 3.8% compared to the same period in 2013 (down 0.5% on a constant currency basis), with weakness in LATAM, APAC and EMEA being mostly offset by favorable trading conditions in NAFTA.
Operating profit was $9 million in the fourth quarter, compared to an operating loss of $53 million for Q4 2013, with an operating margin of 1.1%, due to lower SG&A and R&D expenses as well as favorable volume and mix.
Commercial Vehicles
COMMERCIAL VEHICLES
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
10,888 11,278 -3.5% Net sales 3,354 3,551 5.5%
------ ------ ---- --------- ----- ----- ---
29 74 -45 Operating profit 100 98 2
--- --- --- ---------------- --- --- ---
0.3 0.7 -0.4 p.p. Operating margin
(%) 3.0 2.8 0.2 p.p.
--- --- --------- ---------------- --- --- --------
Net sales for Commercial Vehicles were $10,888 million in 2014, a decrease of 3.5% compared to 2013 (down 1.6% on a constant currency basis) due to lower volumes and the negative impact of currency translation, partially offset by better pricing in all regions. Net sales increased in EMEA driven by higher volumes and favorable mix for trucks, despite lower deliveries in the bus business due to the transition to Euro VI applications. In LATAM, net sales decreased significantly (-31.4%) as a result of overall weak market conditions, production curtailments to realign dealer inventories to market demand, and the negative impact of currency translation. In APAC, net sales increased due to higher volumes, mainly for buses, partially offset by the negative impact of currency translation. The geographic distribution of net sales for the year was 74% EMEA, 16% LATAM and 10% APAC.
During 2014, Commercial Vehicles delivered a total of 128,163 vehicles (including buses and specialty vehicles), representing a 5.5% decrease from 2013. Volumes were higher in the light segment (+2.1%), primarily as a result of the launch of the new Daily, while volumes declined in the heavy (-8.7%) and medium (-24.5%) segments driven by weak trading conditions in LATAM and Euro V pre-buy demand in the second half of 2013 in EMEA. Commercial Vehicles deliveries increased by 3.9% in EMEA and 0.9% in APAC, but declined 37.5% in LATAM (with Brazil down approximately 33% and Argentina down approximately 39%).
The European truck market (GVW >=3.5 tons) grew by 1.0% compared to 2013 to approximately 667,700 units. Light vehicles (GVW 3.5-6 tons) increased by 8.4%, while the medium vehicles market (GVW 6.1-15.9 tons) and heavy vehicles market (GVW >16 tons) decreased by 18.4% and 6%, respectively, mainly due to increased sales of Euro V vehicles in the second half of 2013 prior to the introduction of Euro VI emissions regulations in January 2014. The industry continued to experience large variations in demand across markets.
The Company's market share in the European truck market (GVW >=3.5 tons) remained unchanged year over year at an estimated 10.9%. In the light segment, the share is estimated to be 10.7% (down 0.6 p.p.). In the medium segment, the Company's market share increased by 4.5 p.p. to 29.1%, with gains in nearly all markets, and in the heavy segment was up 0.6 p.p. to 7.5%.
In LATAM, new truck registrations (GVW >=3.5 tons), at 188,800 units, were down 16.4% compared to 2013. The largest decrease was registered in Venezuela, down 73.1%, while Argentina was down 26.0% and Brazil decreased 9.4%.
The Company's share of the LATAM market (GVW >=3.5 tons) was down 0.9 p.p. from 2013 to 10.1%, mainly driven by a 1.0 percentage point decrease in Brazil to 7.8%. Market share increased by 0.8 p.p. and 0.4 p.p., respectively, in light and medium segments, while market share declined by 1.9 p.p. in the heavy segment.
Commercial Vehicles closed the year with an operating profit of $29 million compared to an operating profit of $74 million for 2013, with an operating margin of 0.3% (0.7% for 2013). Difficult trading conditions and negative foreign exchange currency impacts in LATAM were partially offset by the recovery in trucks in EMEA, and cost control actions in SG&A.
For the fourth quarter 2014, Commercial Vehicles' net sales totaled $3,354 million, a decrease of 5.5% compared to the same period in 2013 (up 0.9% on a constant currency basis). Net sales increased in EMEA as a result of favorable mix for trucks, despite lower volumes due to 2013 Euro V pre-buy impact. In APAC, Commercial Vehicles registered higher volumes mainly for buses due to deliveries in certain markets within the region. LATAM volumes were down due to unfavorable market conditions.
Operating profit was $100 million for the quarter, compared to $98 million for Q4 2013, with an operating margin of 3.0% (2.8% in Q4 2013). Favorable pricing in all regions and continuing cost containment on SG&A expenses offset lower volumes and the negative fixed-cost absorption in EMEA, when compared to the positive effects in Q4 2013 mainly driven by the Euro V pre-buy, and in LATAM, where markets remained weak.
Powertrain
POWERTRAIN
Net sales & Operating profit/(loss) ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
4,464 4,412 1.2% Net sales 988 1,331 -25.8%
----- ----- --- --------- --- ----- -----
223 187 36 Operating profit 66 69 -3
--- --- --- ---------------- --- --- ---
5.0 4.2 0.8 p.p. Operating margin
(%) 6.7 5.2 1.5 p.p.
--- --- -------- ---------------- --- --- --------
Net sales for Powertrain were $4,464 million in 2014, an increase of 1.2% compared to 2013 (up 1.4% on a constant currency basis), primarily attributable to higher volumes. Sales to external customers accounted for 41% of total net sales (34% in 2013).
During the year, Powertrain sold a total of 583,589 engines, an increase of 7.1% compared to 2013. By major customer, 24% of engines were supplied to Agricultural Equipment, 24% to Commercial Vehicles, 5% to Construction Equipment and the remaining 47% to external customers (units sold to third parties were up 25% compared to 2013). Additionally, Powertrain delivered 64,174 transmissions (+3.3% compared to 2013) and 156,921 axles, in line with the prior year.
Powertrain closed the year with an operating profit of $223 million, up $36 million from 2013, with an operating margin of 5.0% (4.2% for 2013). The improvement was due to the increase in volumes, a larger proportion of third-party business, and industrial efficiencies.
For the fourth quarter 2014, Powertrain net sales totaled $988 million, a decrease of 25.8% over the same period in 2013 (down 19.1% on a constant currency basis) due to a different quarterly cadence in engine production year over year.
Operating profit was $66 million for the quarter (operating margin of 6.7%), compared to $69 million (operating margin of 5.2%) for Q4 2013, with the impact of lower volumes partially offset by cost containment actions.
Financial Services
FINANCIAL SERVICES
Revenues & Net income ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 Change 2014 2013 Change
---- ---- ------ ---- ---- ------
1,828 1,679 8.9% Revenues 465 432 7.6%
----- ----- --- -------- --- --- ---
364 342 22 Net income 98 122 -24
--- --- --- ---------- --- --- ---
In 2014 Financial Services reported revenues of $1,828 million, an increase of 8.9% compared to 2013, primarily driven by the increase in the average value of the portfolio.
Net income was $364 million for the year, compared to $342 million for 2013 which was negatively affected by the dissolution cost, net of taxes, of $25 million related to the joint venture with the Barclays group. Excluding this item, the improvement mainly attributable to a higher average portfolio value was offset by higher provisions for credit losses and higher income taxes.
Retail loan originations in the year were $10.8 billion, a decrease of $0.6 billion compared to 2013. The managed portfolio (including joint ventures) of $27.3 billion (of which retail was 65% and wholesale 35%) was up $0.4 billion compared to December 31, 2013. Excluding the impact of currency, the managed portfolio increased $2.2 billion, primarily in NAFTA (retail and wholesale) and LATAM (wholesale).
For the fourth quarter 2014, Financial Services' revenues totaled $465 million, up 7.6% compared to the same period in 2013, primarily due to the increase in the average value of the portfolio.
Net income was $98 million for the quarter compared to $122 million for Q4 2013, as the increase in revenues, driven by higher average portfolio, and lower provisions for credit losses were more than offset by higher income taxes.
Dividends
Based on estimated 2014 profit and retained earnings available for distribution by CNH Industrial N.V., and subject to formal Board approval of the Company's 2014 financial statements anticipated to occur on or before beginning of March 2015, the Board of Directors of CNH Industrial N.V. intends to recommend to the Company's shareholders at the Annual General Meeting a dividend of EUR0.20 per common share, totaling approximately $307 million at the exchange rate of 1.134 U.S. dollars per euro on January 28, 2015 (EUR271 million).
2015 U.S. GAAP Outlook
The Company expects improved profitability in Commercial Vehicles and Construction Equipment, coupled with structural cost improvement measures from the Company's Efficiency Program now extended to Agricultural Equipment. These actions are expected to buffer, but not fully offset the negative impact from the continuation of challenging trading conditions in the row crop sector of the agricultural industry, and the impact of the recent significant appreciation of the US dollar against the Company's other trading currencies, allowing the Company to hold operating margin unless there are further currency deteriorations from the current rate levels outside the United States.
Therefore, CNH Industrial is setting its 2015 guidance as follows:
-- Net sales of Industrial Activities of approximately $28 billion, with an
operating margin of Industrial Activities between 6.1% and 6.4%;
-- Net industrial debt at the end of 2015 between $2.2 billion and $2.4
billion, with the expected cash generation during the year resulting
primarily from the inventory reduction in the Agricultural Equipment
segment.
Sergio Marchionne Richard Tobin
Chairman Chief Executive Officer
About CNH Industrial
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com
Additional Information
Today, at 4:00 p.m. GMT, management will hold a conference call to present 2014 full year and fourth quarter results to financial analysts and institutional investors. The call can be followed live and a recording will be available later on the Company's website (www.cnhindustrial.com). A presentation will be made available on the CNH Industrial website prior to the call.
Non-GAAP Financial Information
CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial believes that these non-GAAP financial measures provide useful and relevant information regarding its results and enhance the reader's ability to assess CNH Industrial's financial performance and financial position. They provide measures which facilitate management's ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. These and similar measures are widely used in the industries in which the Company operates. These financial measures may not be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position prepared in accordance with U.S. GAAP and/or IFRS.
CNH Industrial non-GAAP financial measures are defined as follows:
-- Operating Profit under U.S. GAAP: Operating Profit of Industrial
Activities is defined as net sales less cost of goods sold, selling,
general and administrative expenses and research and development
expenses. Operating Profit of Financial Services is defined as revenues,
less selling, general and administrative expenses, interest expenses and
certain other operating expenses.
-- Trading Profit under IFRS: Trading Profit is derived from financial
information prepared in accordance with IFRS and is defined as income
before restructuring, gains/(losses) on disposal of investments and
other unusual items, interest expense of Industrial Activities, income
taxes, equity in income (loss) of unconsolidated subsidiaries and
affiliates, non-controlling interests.
-- Operating Profit under IFRS: Operating Profit under IFRS is computed
starting from Trading Profit under IFRS plus/minus restructuring costs,
other income (expenses) that are unusual in the ordinary course of
business (such as gains and losses on the disposal of investments and
other unusual items arising from infrequent external events or market
conditions).
-- Net income (loss) before restructuring and other exceptional items: it
is defined as Net income (loss), less restructuring charges and
exceptional items, after tax.
-- Net Debt and Net Debt of Industrial Activities (or Net Industrial Debt):
CNH Industrial provides the reconciliation of Net Debt to Total Debt,
which is the most directly comparable measure included in the
consolidated balance sheets. Due to different sources of cash flows used
for the repayment of the debt between Industrial Activities and
Financial Services (by cash from operations for Industrial Activities
and by collection of financing receivables for Financial Services),
management separately evaluates the cash flow performance of Industrial
Activities using Net Debt of Industrial Activities.
-- Working capital: it is defined as trade receivables and financing
receivables related to sales, net, plus inventories, less trade
payables, plus other assets (liabilities), net.
-- Constant Currency: CNH Industrial discusses the fluctuations in revenues
and certain non-GAAP financial measures on a constant currency basis by
applying the prior year exchange rates to current year's values
expressed in local currency in order to eliminate the impact of foreign
exchange rate fluctuations.
Forward-looking statements
Certain statements contained in this earnings release that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the Company's control and are difficult to predict. If any of these risks and uncertainties materialize or other assumptions underlying any of the forward-looking statements prove to be incorrect the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks, and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; general economic conditions in each of the Company's markets; changes in government policies regarding banking, monetary and fiscal policies; legislation, particularly relating to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; actions of competitors in the various industries in which the Company competes; development and use of new technologies and technological difficulties; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; housing starts and other construction activity; the Company's ability to obtain financing or to refinance existing debt; a decline in the price of used vehicles; the resolution of pending litigation and investigations; the Company's relations with Kobelco Construction Machinery Co., Ltd and Sumitomo (S.H.I.) Construction Machinery Co., Ltd.; the Company's pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including further worsening of the Eurozone sovereign debt crisis and other similar financial risks and uncertainties; and the Company's success in managing the risks involved in the foregoing. Further information concerning factors, risks, and uncertainties that could materially affect the Company's financial results is included in our annual report on Form 20-F for the year ended December 31, 2013, prepared in accordance with U.S. GAAP and in our EU Annual Report at December 31, 2013, prepared in accordance with IFRS. Investors should refer to and consider the incorporated information on risks, factors, and uncertainties in addition to the information presented here.
Forward-looking statements speak only as of the date on which such statements are made. Furthermore, in light of ongoing difficult macroeconomic conditions, both globally and in the industries in which CNH Industrial operates, it is particularly difficult to forecast results, and any estimates or forecasts of particular periods that are provided in this earnings release are uncertain. Accordingly, investors should not place undue reliance on such forward-looking statements. Actual results could differ materially from those anticipated in such forward-looking statements. CNH Industrial does not undertake an obligation to update or revise publicly any forward-looking statements.
The Company's outlook is based upon assumptions relating to the factors described in the earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. The Company undertakes no obligation to update or revise its outlook or forward-looking statements, whether as a result of new developments or otherwise. Further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission, the Autoriteit Financiële Markten ("AFM") and Commissione Nazionale per le Società e la Borsa ("CONSOB").
Contacts
Media Inquiries Investor Relations
Richard Gadeselli Federico Donati
Tel: +44 (0) 1268 292468 Tel: +39 011 00 62756
Laura Overall Noah Weiss
Tel: +44 (0) 1268 292468 Tel: +1 630 887 3745
e-mail: mediarelations@cnhind.com
www.cnhindustrial.com
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Operations
For The Years And The Three Months Ended December 31, 2014 and 2013
(Unaudited)
(U.S. GAAP)
($ million) Years Ended December 31, Three Months Ended December 31,
---------- ------------------------ -------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Revenues
--------
Net sales 31,196 32,632 8,018 8,977
--------- ------ ------ ----- -----
Finance and interest income 1,359 1,204 347 313
--------------------------- ----- ----- --- ---
TOTAL REVENUES 32,555 33,836 8,365 9,290
-------------- ------ ------ ----- -----
Costs and Expenses
------------------
Cost of goods sold 25,534 26,551 6,737 7,434
------------------ ------ ------ ----- -----
Selling, general and
administrative expenses 2,925 3,094 685 869
------------------------ ----- ----- --- ---
Research and development
expenses 1,106 1,222 297 384
------------------------ ----- ----- --- ---
Restructuring expenses 184 71 86 39
---------------------- --- --- --- ---
Interest expense 1,318 1,196 342 333
---------------- ----- ----- --- ---
Other, net 399 328 92 84
---------- --- --- --- ---
TOTAL COSTS AND EXPENSES 31,466 32,462 8,239 9,143
------------------------ ------ ------ ----- -----
INCOME BEFORE INCOME TAXES AND
EQUITY IN INCOME OF
UNCONSOLIDATED SUBSIDIARIES
AND AFFILIATES 1,089 1,374 126 147
------------------------------ ----- ----- --- ---
Income taxes 467 671 59 130
------------ --- --- --- ---
Equity in income of
unconsolidated subsidiaries
and affiliates 86 125 20 37
---------------------------- --- --- --- ---
NET INCOME 708 828 87 54
---------- --- --- --- ---
Net income (loss) attributable
to noncontrolling interests (2) 151 4 (6)
------------------------------ --- --- --- ---
NET INCOME ATTRIBUTABLE TO CNH
INDUSTRIAL N.V. 710 677 83 60
------------------------------ --- --- --- ---
(in $)
-----
Earnings per share attributable to common shareholders
---------------------------------------------
Basic 0.52 0.54 0.06 0.04
----- ---- ---- ---- ----
Diluted 0.52 0.54 0.06 0.04
------- ---- ---- ---- ----
CNH INDUSTRIAL N.V.
Condensed Consolidated Balance Sheets
As of December 31, 2014 and 2013
(Unaudited)
(U.S. GAAP)
($ million) December 31, December 31,
2014 2013
---------- ------------ ------------
Cash and cash equivalents 5,163 5,567
Restricted cash 978 922
Financing receivables, net 21,472 21,976
-------------------------- ------ ------
Inventories, net 7,008 7,410
Property, plant and equipment, net and Equipment under operating leases 8,383 8,149
----------------------------------------------------------------------- ----- -----
Intangible assets, net 3,334 3,314
---------------------- ----- -----
Other receivables and assets 5,575 6,505
---------------------------- ----- -----
TOTAL ASSETS 51,913 53,843
------------ ------ ------
Debt 29,594 29,866
---- ------ ------
Other payables and liabilities 17,342 19,010
------------------------------ ------ ------
Total liabilities 46,936 48,876
----------------- ------ ------
Redeemable noncontrolling interest 16 12
---------------------------------- --- ---
Equity attributable to CNH Industrial N.V. 4,922 4,901
------------------------------------------ ----- -----
Noncontrolling interests 39 54
------------------------ --- ---
Equity 4,961 4,955
------ ----- -----
TOTAL EQUITY AND LIABILITIES 51,913 53,843
---------------------------- ------ ------
CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Cash Flows
For The Years Ended December 31, 2014 and 2013
(Unaudited)
(U.S. GAAP)
($ million)
----------
2014 2013
---- ----
Net income 708 828
---------- --- ---
Adjustments to reconcile net income to net cash provided by operating activities (27) 694
-------------------------------------------------------------------------------- --- ---
NET CASH PROVIDED BY OPERATING ACTIVITIES 681 1,522
----------------------------------------- --- -----
NET CASH USED IN INVESTING ACTIVITIES (1,959) (3,788)
------------------------------------- ------ ------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,365 2,616
----------------------------------------- ----- -----
Effect of foreign exchange rate changes on cash and cash equivalents (491) 18
-------------------------------------------------------------------- ---- ---
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (404) 368
------------------------------------------------ ---- ---
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 5,567 5,199
-------------------------------------------- ----- -----
CASH AND CASH EQUIVALENTS, END OF YEAR 5,163 5,567
-------------------------------------- ----- -----
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
(U.S. GAAP)
CNH INDUSTRIAL
Net debt ($ million)
12.31.2014 12.31.2013
---------- ----------
Total debt (1) (29,594) (29,866)
- Asset-backed
financing (13,587) (14,712)
- Other debt (16,007) (15,154)
------------ ------- -------
Derivative hedging
debt 35 44
------------------- --- ---
Cash and cash
equivalents 5,163 5,567
-------------- ----- -----
Restricted cash 978 922
--------------- --- ---
Net debt (23,418) (23,333)
-------- ------- -------
Industrial
Activities (2,691) (2,214)
--------------- ------ ------
Financial Services (20,727) (21,119)
------------------ ------- -------
Cash, cash
equivalents and
restricted cash 6,141 6,489
---------------- ----- -----
Undrawn committed
facilities 2,716 2,224
------------------ ----- -----
Available liquidity 8,857 8,713
------------------- ----- -----
(1) Inclusive of adjustments
to fair value hedges.
------------------------------
(U.S. GAAP)
CNH INDUSTRIAL
Change in Net Industrial Debt ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 2014 2013
---- ---- ---- ----
Net
industrial
(debt)/cash
at beginning
(2,214) (1,961) of period (3,935) (3,362)
------ ------
708 828 Net income 87 54
--- ---
725 686 Amortization
and
depreciation
(*) 173 178
--- ---
Changes in
provisions
and similar,
and items
related to
assets sold
under buy-
back
commitments,
and assets
under
operating
(87) 59 lease (51) (106)
--- ---
(1,025) (19) Change in
working
capital 1,456 1,645
------ -----
Investments
in property,
plant and
equipment,
and
intangible
(1,005) (1,220) assets (*) (417) (576)
------ ----
8 (34) Other changes (69) (7)
--- ---
(676) 300 Net
industrial
cash flow 1,179 1,188
---- -----
(364) (374) Capital
increases
and
dividends 2 (4)
---- ---- ---------- --- ---
563 (179) Currency
translation
differences 63 (36)
--- ---- ------------ --- ---
(477) (253) Change in Net
industrial
debt 1,244 1,148
---- ---- ------------- ----- -----
Net
industrial
(debt)/cash
at end of
(2,691) (2,214) period (2,691) (2,214)
------ ------ ----------- ------ ------
(*) Excluding assets sold under buy-back commitments
and assets under operating lease.
----------------------------------------------------
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
(U.S. GAAP)
CNH INDUSTRIAL
Net Income and basic EPS before Restructuring and Exceptional Items
($ million, except per share data)
Full Year 4th Quarter
2014 2013 2014 2013
---- ---- ----
708 828 Net income 87 54
--- --- ---------- ---
168 68 Restructuring
expenses, net
of tax 80 37
--- --- -------------- ---
64 51 Other
exceptional
items, net of
tax - 26
--- --- -------------- ---
Net income
before
restructuring
and other
exceptional
940 947 items 167 117
--- --- -------------- ---
Net income
before
restructuring
and other
exceptional
items
attributable
to CNH
Industrial
930 795 N.V. 162 122
--- --- -------------- --- ---
1,354 1,255 Weighted
average shares
outstanding
(million) 1,355 1,350
----- ----- --------------- ----- -----
Basic EPS
before
restructuring
and
exceptional
0.69 0.63 items ($) 0.12 0.08
---- ---- -------------- ---- ----
Translation of financial statements denominated in a currency other than the U.S. dollar
The principal exchange rates used to translate into U.S. dollars the financial statements prepared in currencies other than the U.S. dollar were as follows:
Average 2014 At December 31, 2014 Average 2013 At December 31, 2013
------------ -------------------- ------------ --------------------
Euro 0.753 0.824 0.753 0.725
---- ----- ----- ----- -----
Pound
sterling 0.607 0.642 0.640 0.605
--------- ----- ----- ----- -----
Swiss franc 0.914 0.990 0.927 0.890
----------- ----- ----- ----- -----
Polish
zloty 3.149 3.520 3.161 3.012
------ ----- ----- ----- -----
Brazilian
real 2.349 2.653 2.159 2.362
--------- ----- ----- ----- -----
Argentine
peso 8.115 8.551 5.469 6.518
--------- ----- ----- ----- -----
Turkish
lira 2.188 2.333 1.907 2.147
------- ----- ----- ----- -----
CNH INDUSTRIAL N.V.
Condensed Consolidated Income Statement
For The Years And The Three Months Ended December 31, 2014 and 2013
(Unaudited)
(IFRS)
($ million) 2014 2013 (*) 4th Quarter 2014 4th Quarter 2013 (*)
---------- ---- ------- ---------------- -------------------
NET REVENUES 32,957 34,231 8,488 9,415
------------ ------ ------ ----- -----
Cost of sales 26,841 27,750 7,081 7,796
------------- ------ ------ ----- -----
Selling, general and administrative costs 2,753 2,961 643 818
----------------------------------------- ----- ----- --- ---
Research and development costs 878 797 233 195
------------------------------ --- --- --- ---
Other income/(expenses) (86) (86) (13) (9)
----------------------- --- --- --- ---
TRADING PROFIT/(LOSS) 2,399 2,637 518 597
--------------------- ----- ----- --- ---
Gains/(losses) on the disposal of investments - (25) - (25)
--------------------------------------------- --- --- --- ---
Restructuring costs 192 54 76 27
------------------- --- --- --- ---
Other unusual income/(expenses) (40) (77) (16) (13)
------------------------------- --- --- --- ---
OPERATING PROFIT/(LOSS) 2,167 2,481 426 532
----------------------- ----- ----- --- ---
Financial income/(expenses) (776) (615) (191) (162)
--------------------------- ---- ---- ---- ----
Result from investments 91 136 23 42
----------------------- --- --- --- ---
Share of the profit/(loss) of investees accounted for using equity method 90 135 22 42
---------------------------------------------------------------------------- --- --- --- ---
Other income/(expenses) from investments 1 1 1 -
------------------------------------------- --- --- --- ---
PROFIT/(LOSS) BEFORE TAXES 1,482 2,002 258 412
-------------------------- ----- ----- --- ---
Income taxes 566 784 125 178
------------ --- --- --- ---
PROFIT/(LOSS) FROM CONTINUING OPERATIONS 916 1,218 133 234
---------------------------------------- --- ----- --- ---
Profit/(loss) from discontinued operations - - - -
------------------------------------------ --- --- --- ---
PROFIT/(LOSS) 916 1,218 133 234
------------- --- ----- --- ---
PROFIT/(LOSS) ATTRIBUTABLE TO:
------------------------------
Owners of the parent 917 1,048 128 237
-------------------- --- ----- --- ---
Non-controlling interests (1) 170 5 (3)
(in $)
BASIC EARNINGS/(LOSS) PER COMMON SHARE 0.68 0.83 0.10 0.17
-------------------------------------- ---- ---- ---- ----
DILUTED EARNINGS/(LOSS) PER COMMON SHARE 0.68 0.83 0.10 0.17
---------------------------------------- ---- ---- ---- ----
(*) Amounts recast in order to
reflect the change in
presentation currency from
Euro to U.S. dollar.
CNH INDUSTRIAL N.V.
Condensed Consolidated Statement of Financial Position
As of December 31, 2014 and 2013
(Unaudited)
(IFRS)
($ million) December 31, 2014 December 31, 2013 (*)
---------- ----------------- --------------------
ASSETS
------
Intangible assets 6,031 6,046
----------------- ----- -----
Property, plant and equipment and Leased assets 8,251 8,026
----------------------------------------------- ----- -----
Inventories 7,140 7,536
----------- ----- -----
Receivables from financing activities 21,472 21,986
------------------------------------- ------ ------
Cash and cash equivalents 6,141 6,489
------------------------- ----- -----
Other receivables and assets 5,406 6,379
---------------------------- ----- -----
TOTAL ASSETS 54,441 56,462
------------ ------ ------
EQUITY AND LIABILITIES
----------------------
Issued capital and reserves attributable to owners of the parent 7,534 7,591
---------------------------------------------------------------- ----- -----
Non-controlling interests 43 71
------------------------- --- ---
Total Equity 7,577 7,662
------------ ----- -----
Debt 29,701 29,946
---- ------ ------
Other payables and liabilities 17,163 18,854
------------------------------ ------ ------
Total Liabilities 46,864 48,800
----------------- ------ ------
TOTAL EQUITY AND LIABILITIES 54,441 56,462
---------------------------- ------ ------
(*) Amounts recast in order to
reflect the change in
presentation currency from
Euro to U.S. dollar.
CNH INDUSTRIAL N.V.
Condensed Consolidated Statement of Cash Flows
For The Years Ended December 31, 2014 and 2013
(Unaudited)
(IFRS)
($ million) 2014 2013 (*)
---------- ---- -------
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 6,489 6,084
---------------------------------------------- ----- -----
Profit/(loss) 916 1,218
------------- --- -----
Adjustments to reconcile profit/(loss) to cash flows from/(used in) operating activities 257 1,219
---------------------------------------------------------------------------------------- --- -----
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES 1,173 2,437
---------------------------------------------- ----- -----
CASH FLOWS FROM/(USED IN) INVESTMENT ACTIVITIES (2,380) (4,555)
----------------------------------------------- ------ ------
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES 1,373 2,532
---------------------------------------------- ----- -----
Translation exchange differences (514) (9)
-------------------------------- ---- ---
TOTAL CHANGE IN CASH AND CASH EQUIVALENTS (348) 405
----------------------------------------- ---- ---
CASH AND CASH EQUIVALENTS AT END OF YEAR 6,141 6,489
---------------------------------------- ----- -----
(*) Amounts recast in order to
reflect the change in
presentation currency from
Euro to U.S. dollar.
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
CNH INDUSTRIAL
Revenues by Segment under IFRS ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013(*) % change 2014 2013(*) % change
---- ------ -------- ---- ------ --------
15,204 16,763 -9.3 Agricultural
Equipment 3,403 4,142 -17.8
------ ------ ---- ----- -----
3,346 3,258 2.7 Construction
Equipment 800 832 -3.8
----- ----- --- --- ----
11,087 11,447 -3.1 Commercial
Vehicles 3,412 3,601 -5.2
------ ------ ---- ----- ----
4,475 4,423 1.2 Powertrain 991 1,333 -25.7
----- ----- --- ---------- --- ----- -----
(2,704) (3,050) - Eliminations
and other (527) (860) -
------ ------ --- ------------ ---- ---- ---
31,408 32,841 -4.4 Total
Industrial
Activities 8,079 9,048 -10.7
------ ------ ---- ----------- ----- ----- -----
2,086 1,950 7.0 Financial
Services 545 523 4.2
----- ----- --- ---------- --- --- ---
(537) (560) - Eliminations
and other (136) (156) -
---- ---- --- ------------ ---- ---- ---
32,957 34,231 -3.7 Total 8,488 9,415 -9.8
------ ------ ---- ----- ----- ----- ----
(*) Amounts recast in order to reflect the change in presentation
currency from Euro to U.S. dollar.
-----------------------------------------------------------------
CNH INDUSTRIAL
Trading profit/(loss) by Segment under IFRS ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013(*) Change 2014 2013(*) Change
---- ------ ------ ---- ------ ------
1,689 1,949 -260 Agricultural
Equipment 238 331 -93
----- ----- ---- --- ---
66 (109) 175 Construction
Equipment 2 (53) 55
--- ---- --- --- ---
2 145 -143 Commercial
Vehicles 113 135 -22
--- --- ---- --- ---
220 210 10 Powertrain 73 95 -22
--- --- --- ---------- --- --- ---
(110) (76) -34 Eliminations
and other (47) (35) -12
---- --- --- ------------ --- --- ---
1,867 2,119 -252 Total
Industrial
Activities 379 473 -94
----- ----- ---- ----------- --- --- ---
532 518 14 Financial
Services 139 124 15
--- --- --- ---------- --- --- ---
- - - Eliminations
and other - - -
--- --- --- ------------ --- --- ---
2,399 2,637 -238 Total 518 597 -79
----- ----- ---- ----- --- --- ---
7.3 7.7 -0.4 p.p Trading
margin (%) 6.1 6.3 -0.2 p.p
--- --- -------- ----------- --- --- --------
(*) Amounts recast in order to reflect the change in presentation
currency from Euro to U.S. dollar.
-----------------------------------------------------------------
CNH INDUSTRIAL
Key Balance Sheet data
under IFRS ($
million)
12.31.2014
12.31.2013(*)
------------
Total assets 54,441 56,462
------
Total equity 7,577 7,662
-----
Equity attributable to CNH
Industrial N.V. 7,534 7,591
-----
Net debt (23,590) (23,290)
-------- ------- -------
Of which Net industrial debt (2,874) (2,195)
---------------------------- ------ ------
(*) Amounts recast in order to reflect the
change in presentation currency from Euro
to U.S. dollar.
------------------------------------------
CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)
CNH INDUSTRIAL
Net income reconciliation ($ million)
Full Year 4th Quarter
--------- -----------
2014 2013 2014 2013
---- ---- ---- ----
708 828 Net income under U.S.
GAAP 87 54
--- ---
Adjustments to conform
with IFRS:
231 443 Development costs, net
of amortization 50 203
--- ---
8 8 Goodwill and other
intangible assets 2 2
--- --- ------------------- --- ---
56 16 Defined benefit plans 44 4
--- --- --------------------- --- ---
(8) 17 Restructuring provisions 10 12
--- --- ------------------------ --- ---
20 19 Other adjustments 6 7
--- --- ----------------- --- ---
(103) (158) Tax impact on
adjustments (6) (52)
---- ---- -------------- --- ---
4 45 Deferred tax assets and
tax contingencies
recognition (60) 4
--- --- ------------------------ --- ---
208 390 Total adjustments 46 180
--- --- ----------------- --- ---
916 1,218 Profit under IFRS 133 234
--- ----- ----------------- --- ---
CNH INDUSTRIAL
Total Equity reconciliation ($ million)
Full Year
---------
2014 2013
---- ----
Total Equity under U.S. GAAP 4,961 4,955
---------------------------- ----- -----
Adjustments to conform with IFRS:
---------------------------------
Development costs, net of amortization 2,819 2,862
-------------------------------------- ----- -----
Goodwill and other intangible assets (122) (130)
------------------------------------ ---- ----
Defined benefit plans (6) (29)
--------------------- --- ---
Restructuring provisions (12) (6)
------------------------ --- ---
Other adjustments (16) (15)
----------------- --- ---
Tax impact on adjustments (815) (773)
------------------------- ---- ----
Deferred tax assets and tax contingencies recognition 768 798
----------------------------------------------------- --- ---
Total adjustments 2,616 2,707
----------------- ----- -----
Total Equity under IFRS 7,577 7,662
----------------------- ----- -----
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SOURCE CNH Industrial N.V.
